Commercial Banking: With industrialization, banks began to play a larger role in economic development by providing capital for industry through loans.
Central Banking: Central banks emerged as key regulators of national economies, managing monetary policy, issuing currency, and acting as lenders of last resort.
20th Century Developments:
- Federal Reserve System (1913): Established in the U.S. to provide the nation with a safer, more flexible, and more stable monetary and financial system.
- Glass-Steagall Act (1933): Introduced in the U.S. to separate investment from commercial banking to avoid conflicts of interest, but parts were repealed in 1999, leading to significant changes in banking practices.
Digital Era (Late 20th Century - Present):
- Online Banking: Began in the 1980s but took off in the 1990s with the internet, allowing customers to manage accounts, pay bills, and transfer money online.
- Cryptocurrency and Fintech: The advent of Bitcoin in 2009 and the subsequent rise of blockchain technology have begun to redefine what banking can be, moving towards decentralized finance (DeFi).
Current Trends:
- Neobanks: Digital-only banks that operate without traditional physical branch networks.
- Blockchain and Cryptocurrency: Banks are exploring these technologies for secure, transparent transactions, though with caution due to regulatory and security concerns.

Fractional Reserve Banking: First established in Amsterdam with the Wisselbank (1609), this allowed banks to lend out more money than they had in reserves, based on the assumption that not all depositors would withdraw their funds simultaneously.
Bank of England (1694): One of the first modern central banks, it set standards for banking regulations and nationalized financial stability.

Merchant Bankers: In medieval Europe, especially during the Crusades, Jewish and later Italian merchants like the Medici family facilitated trade across regions, which included money changing, loaning, and managing financial transactions.
Bills of Exchange: Developed to bypass the usury laws, these were essentially IOUs that facilitated trade without the need for coin transfer, evolving into what would become modern checks.

Temple Banking: Temples in ancient Mesopotamia, Egypt, and later in Greece and Rome acted as places where wealth could be stored safely. These were the first known financial institutions, offering basic banking services like safe deposit and loans.
Money Lending in Antiquity: Money lending was prevalent, with interest rates often regulated by law or religious practices.